ADDRESSING THE IMPACT OF HOUSING AFFORDABILITY FOR VIRGINIA’S ECONOMY Virginia Coalition of Housing and Economic Development Researchers GEORGE MASON UNIVERSITY VIRGINIA COMMONWEALTH UNIVERSITY VIRGINIA TECH WILLIAM AND MARY 1

Component 1: Economic Impact Analysis “Show how the industry’s strength or weakness affects state and regional economic vitality” Assess the impacts of the VA housing industry – Single family & multifamily – New construction and repair/remodeling Materials, professional services (architects, engineers) – RE services (brokers, agents property mgmt, legal) – Financial (may not be able to separate HELOC in initial analysis) Broad comparisons with other key industries 2

Supply & Demand 3 Community Vitality Component 2: Housing & Economic Development Linkages Unpacking Housing and Affordability: Housing is a key part of the economic infrastructure. It is intertwined with other key economic components! Household Well-being Economic Investment

Housing & Economic Investment Households consider the cost of the entire “housing package” along with other costs of living when they choose where to live. If costs outweigh the benefits (from wages, social capital, amenities and opportunities) in any region, investment and re-investment can change. 4

Housing Supply & Affordability The appropriateness of housing and its affordability impact economic investment and household well-being. – Comprehensive costs of the complete “housing package”: Direct housing costs i.e. utilities and rent Transportation (time and money) Trade-offs (what households give up) to have housing Consequences of inadequate housing might result from: – high cost areas – rural vs. urban differences – built-out areas and revitalization needs and/or aging stock 5

Housing & Household Well-being When the costs of the “housing package” far outweigh the benefits households can become “trapped” – With no opportunity for growth – With generational consequences – In a physically unhealthy environment – In a mentally unhealthy state 6

Housing & Community Vitality When the benefits of the “housing package” outweigh the cost  Investment in neighborhoods, towns and cities increases  Economic vitality and competitiveness When the costs of the “housing package” far outweigh the benefits in a particular locality  Lack of Re-investment  Disinvestment 7

Connecting Housing & Economics Direct Housing Costs & Benefits – Production Costs & Efficiencies – Housing Supply & Demand – Household Costs: Operations/utilities Transportation & location Health consequences and benefits Access to education (or lack thereof) 8

Process Review of others’ efforts to examine the same question Data compilation and management- (coding and merging comprehensive data for spatial representation) Data analysis (modeling, spatial, etc.) Stakeholder engagement Synthesize and assess the impacts of the entire “housing package” 9

Universities and Approach Housing  GEORGE MASON UNIVERSITY  VIRGINIA COMMONWEALTH UNIVERSITY  VIRGINIA TECH Spatial Analysis  VIRGINIA COMMONWEALTH UNIVERSITY 10 Economics  GEORGE MASON UNIVERSITY  VIRGINIA COMMONWEALTH UNIVERSITY  VIRGINIA TECH  WILLIAM AND MARY Transportation  VIRGINIA TECH (LEAD)  GEORGE MASON UNIVERSITY

Packaging the Research 11 At a minimum, we will integrate all of the analysis and findings into one clear story from beginning to end. Identify major themes (for example) : – Economic Opportunity – Economic Development – Community Vitality Work with Commonwealth, VHDA and DHCD to determine most useful methods for reporting.